Reducing rates when rates are already low, probably will not do much to stimulate economic activity or increase confidence. We have a corona issue and lower rates will not reduce fears over this virus or reduce fears over Sanders becoming POTUS. I view today's rate cut as neutral to negative for the markets. At this point, the virus is not a black swan (credit to Taleb for its usage here). It is soon to determine if the virus will have a substantial impact on the US economy and markets. The rate cut might send a message that the Fed is worried about economic conditions, which could have a negative impact on markets. Also, with rates so low, we will have a reduced ability to stimulate the economy when a new crises emerges.
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Hi financeabc, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
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